The EUR/CAD pair has been one that I’ve been watching for some time now, and on Friday we got the action that I had hoped to see. The 1.45 level has been supportive, and an uptrend line was crossing at the same time. Because of this, I felt very bullish of this pair and the fact that the Canadian jobs numbers came out so poorly should only continue to push this market higher. I can see that the market has a relatively clear path to the 1.50 handle, so I am very bullish of this market in general. While the Euro is basically treading water against the US dollar, the fact that Canada had bad economic numbers and has just seen this pair had a trend line makes me much more interested in buying this pair than the EUR/USD.
Ultimately, I think that every time this market pulls back will more than likely and that being in buying opportunity, at least as long as we can stay above the 1.45 handle. With that, I believe that buying the dips will continue to be what short-term traders are doing, and long-term traders of course will continue to hang onto the straight until we break out much higher towards the upside.
The candle also looks very strong as well.
The candle is very strong on top of everything else as we close towards the very top of the range for Friday, and it was a fairly large one. With that being the case, the market should continue to show strength overall, and with that really shouldn’t have too many issues given enough time and patience when it comes to selling the Canadian dollar in general, but especially against the Euro which seems to be a bit more stable at this point in time than the US dollar.
Pay attention to the oil markets, as they can move the Canadian dollar, but I believe that we are essentially looking at the totality of the Canadian economy more than anything else, and as a result the effects of the oil markets might be a little bit more muted than usual. Ultimately though, this looks a fair shot at being profitable to the upside as far as I can tell.